Question

Requirements 1. Compute the direct material price variance and the direct material quantity variance. 2. What is the total variance for direct material? 3. Who is generally responsible for each variance? 4. Interpret the variances.GrandScapes data set.GrandScapes is a manufacturer of large flower pots for urban settings. The company has these standards:Direct materials (resin)............................................. 8 pounds per pot at a cost of $ 6.00 perpound Direct labor............................................................. 2.0 hours at a cost of $ 15.00 per hour tandard variable manufacturing overhead rate..................................................... $ 4.00 per directlabor hour Budgeted fixed manufacturing overhead............... $ 16,600 Standard fixed MOH rate........................................ $ 8.00 per direct labor hour (DLH)

GrandScapes allocated fixed manufacturing overhead to production based on standard direct labor hours. Last month, the company reported the following actual results for the production of 1,100 flower pots:

Direct materials....................................................... Purchased 9,950 pounds at a cost of $ 6.30 per pound; used 9,350 pounds to produce 1,100 pots

Direct labor............................................................. Worked 2.2 hours per flower pot (2,420 total DLH) at a cost of $ 14.00 per hour